Commercial and residential investment real estate information; green, sustainable resources; compiled news, market trends; plus business and personal development and support, healthcare, safety and security, interesting things to see and do ... and more.

Providing local and regional support for you while conducting business, living and vacationing in the Delaware Valley (NJ & PA) area, but also covering topics that are broader or national in scope.

Tuesday, November 22, 2005

FHA Loans With Down Payment Assistance Need Watching

The U.S. Government Accountability Office (GAO) reported that almost half of all FHA mortgages issued for single-family houses in 2004 had some sort of downpayment assistance.

GAO is concerned about statistics showing that loans with downpayments assistance having a higher delinquency rate, especially those involving seller assistance. It recommends that FHA establish tighter controls to address these concerns, especially for seller-assisted loans.

The report, called Mortgage Financing: Additional Action Needed to Manage Risks of FHA-Insured Loans with Down Payment Assistance, can be accessed online at GAO.